US Dollar Weakens As Traders Focus On The FOMC Meeting

Economic analysts are now trying to assess the damage to the US economy due to the prolonged government shutdown. The U.S. dollar tumbled, U.S. Treasury prices rallied and gold shot higher after lawmakers reached a last-minute deal to avoid a U.S. debt default, as investors anticipated that lingering uncertainty in Washington would push back the Federal Reserve’s plans to wind down stimulus efforts. The 11th-hour deal struck late Wednesday in Congress will reopen the government, but investor relief turned to concern about the 16-day fight’s toll on the world’s largest economy. The US dollar fell below the 80 price level on Thursday and is flat this morning trading at 79.80. The euro was a big gainer on the back of the US dollar climbing to trade at 1.3685 setting a recent high. The Euro gained around 1 percent yesterday taking cues from weakness in the DX. Further, upbeat global market sentiments coupled with positive data from the region supported an upside in the currency. Euro Zone’s Current Account rose to 17.4 billion euros in August from 15.5 billion euros in July. By mid-afternoon on Thursday after President Obama had signed the new budget and debt ceiling agreements markets began to shift to risk on sentiment and look at the next FOMC move. The dollar fetched ¥97.84, down from ¥98.76. The Aussie dollar changed hands at $0.9630 from $0.9552. The British pound rose to $1.6159 from $1.5948, and the dollar fell to 0.9023 Swiss francs from 0.9134 franc. The Federal Open Market Committee holds its next policy meeting later this month on Oct. 29-30.

US Unemployment Claims declined by 15,000 to 358,000 for the week ending on 11th October 2013 as against a rise of 373,000 a week ago. Philly Fed Manufacturing Index slipped by 2.5 points to 19.8-mark in October from 22.3-level in September. The UK Pound appreciated by around 1.35 percent in the yesterday’s trading session on the back of favorable retail sales data from the region. Further, upbeat global market sentiments coupled with weakness in the DX also supported an upside in the Pound. The currency touched an intra-day high of 1.6172 and closed at 1.6164 on Thursday. UK’s Retail Sales gained 0.6 percent in September as compared to a decline of 0.8 percent in August.

This morning Asian currencies are responding to stronger than expected Chinese data. This morning releases showed that industrial production and GDP met expectations with GDP printing at 7.8%. The only negative was a drop in retail sales below forecast, which weighs heavily on the Aussie and the kiwi as they depend on their trade with China. China is the leading importer of dairy products from New Zealand. The NZD is trading at 0.8458 easing from Thursdays rally by 28 points while the Aussie dipped to 0.9621. While the Japanese yen is trading down by 14 points against the US dollar as traders move away from safe haven trades in the hopes of high risk profits. has already collected more than 30 the most famous and trustable Forex rebate brokers. If you opened an account with these brokers through us, your fund will be secured and we will provide you the highest Forex cashback in the market. At the end of each month, you will receive the rebate in cash from us as well as find your commission has been sharply reduced. It means you will have further more profitable opportunities. We will guarantee you will get the cash on time.

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